Dr Kumar Srinivasan, Assistant Professor, Department of Management, Paari School of Business (PSB) authored the research article titled “Digital Transformation and Sustainability in the Automotive Industry: Key Enablers for Industry 4.0 and Circular economy,” published in the Q1 journal The TQM Journal, which has an Impact Factor of 4.4.

This study identifies the key critical success factors (CSFs) needed to integrate Industry 4.0 and Circular Economy practices within the automotive industry. Using expert insights and the Fuzzy Best–Worst Method (F-BWM), the research ranks the most influential factors driving sustainable manufacturing. The study also highlights practical managerial actions and offers a unique methodological contribution by applying F-BWM in the automotive context. Limitations and directions for future research such as expanding the CSF list, studying factor interrelationships, and testing across industries, are also discussed.

Abstract

This study identifies essential Critical success factors (CSFs) for the integration of Industry 4.0 (I4.0) and Circular Economy (CE) concepts in the automotive sector, focusing on successful transitions toward sustainable manufacturing. A comprehensive literature review and expert opinions were used to find key CSFs ranked using the Fuzzy Best-Worst Method (F-BWM), a robust multi-criteria decision-making approach. The study quantifies the global influence of these factors, with top CSFs being Environmental Impact Reduction Technologies, Technology Interoperability, and Sustainability Awareness, suggesting organizations to adopt more advanced and environmentally friendly technologies. The findings provide valuable insights for automotive organizations wishing to remain competitive through sustainable manufacturing practices. This research is unique in utilizing the F-BWM approach in the automobile industry, thus bridging the gap from the literature on I4.0. Nevertheless, the work has limitations, as it focuses on a narrow range of CSFs and employs a singular methodology that disregards interdependence. Moreover, the study results may not be entirely generalized across other industries. Future studies can address the limitation to an extent by adding a proper description in terms of the CSFs list and methodologies like DEMATEL or ANP, considering the interrelationship among factors, or exploring across-the-industry comparisons.

Future Research Plans

Future research might consider the application of more methodologies for studying interrelationships among factors by expanding the list of CSFs and analysing interrelations among the factors together, apart from the use of the framework to other industries, especially electronics or energy, for a more generalized understanding of CSFs. Longitudinal studies investigating how the relevance of these CSFs change over time would enable managers to revise their strategies to succeed in the long term.

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